Aug 4, 2026 earnings call — Data-incident recovery and margin outlook
Consolidated revenue grew 10% year-over-year in constant currency.
Revenue $8.9B (est $8.9B) · EPS $-0.32 (est $-0.27)
Key quotes
"The vast majority of our customer spend never moved. That group is spending at the highest levels in our history and compounding similarly to before last year's data incident."
"This represents a contraction of approximately 390 basis points year-over-year, resulting from the gross profit margin impacts I just described, as well as the headwinds from our current capacity and fixed cost structure built against a pre-incident demand curve."
"Taiwan is on the same compounding curve as Korea, just earlier on in it."
Analyst Q&A 5
Product commerce margin recovery and Taiwan losses
Q (Stanley Yang · JPMorgan): He asked to confirm if product commerce margins recover to 2025 levels by 2027 and what will drive that. He also asked if competition after the data incident is causing cost pressure and whether Taiwan losses will structurally decline.
A: Management said they expect product commerce margins to recover by mid 2027 as volumes grow and utilization improves. They said most margin pressure came from temporary items they kept to protect customer experience and from softer volumes, not structural change. On Taiwan, they said it is mid-build and they are investing to build durable growth; they will give more developing-offerings guidance at year end.
"Beyond Q3, the improvement will become increasingly evident in the reported numbers as we expect this product commerce margin to return to approximately pre-incident levels by mid 2027." — Gaurav Anand (CFO)
Growth gap and margin recovery timing
Q (Eric Cha · Goldman Sachs): He asked why reported product commerce growth was 8% while existing WOW members grew about 16%, and whether growth should meaningfully step up by Q4. He also asked if the Q3 margin guide (down 300 to 400 basis points) includes inefficiencies from the data incident and how recovery will progress.
A: Management said the 16% figure describes customers who stayed or returned; a small group of lower-spending customers who haven't returned is pulling reported growth down to 8%. They said margins were hit by supply-chain headwinds, higher marketing to reacquire customers, and underused capacity, and they expect meaningful progress over the next several quarters though recovery may not be linear.
"Everyone else is growing at about 16% year-over-year." — Bom Kim (CEO)
Developing offerings losses and agentic AI plans
Q (Seyon Park · Morgan Stanley): He asked which parts of developing offerings showed lower losses and how to think about Q3 and Q4 losses. He also asked whether the company plans to use agentic AI for shopping and when.
A: Management said Taiwan is the primary place they are investing and that quarterly moves are not the focus; they remain in line with full-year guidance and will update at year end. On AI, they said they already deploy AI across many operations and are researching agentic AI; the winning agentic experience is not yet clear, so they are investing thoughtfully and will act when a clear approach emerges.
"On the agentic AI part that you've brought up specifically, we think this is still a work in progress." — Bom Kim (CEO)
Q3 holiday impact and missing customers
Q (Jiong Shao · Barclays): He asked how the Chuseok holiday timing affects Q3 product commerce growth and whether margin recovery refers to product commerce. He also asked why some customers in the missing cohort might not return.
A: Management said they are not giving a numeric estimate by cause but that Q3 faces a temporary calendar and seasonal headwind from Chuseok timing. They reiterated the underlying customer base is growing about 16% year-over-year, confirmed margin recovery refers to product commerce next year, and said some customers may still have trust or sentiment issues they must earn back over time.
"This is primarily a temporary calendarization impact and weather seasonal-related impact, which we expect in Q3." — Gaurav Anand (CFO)
Taiwan supplier onboarding pace
Q (Wei Fang · Mizuho): She asked how fast local Taiwan brands are onboarding compared to Korea at the same stage and requested examples of brands onboarded so far.
A: Management said Taiwan is at a very early stage and supplier adoption is following a similar trajectory to Korea's early years, which they find encouraging. They said expanding local selection is a top priority but they are still at a small fraction of the future selection and did not provide specific brand examples.
"The supplier adoption is following a trajectory similar to what we experienced during the early years in Korea." — Bom Kim (CEO)